TMI BlogEXPORT PROMOTION CAPITAL GOODS (EPCG) SCHEMEX X X X Extracts X X X X X X X X Extracts X X X X ..... leather products, paper paperboard and articles thereof, ceramic products, refractories, glass glassware, rubber articles thereof, plywood and allied products, marine products, sports goods and toys subject to exclusions as provided in HBP Vol. I. Validity period for import of capital goods and provision for extension in export obligation period will be as separately provided in the HBP Vol. I. All other provisions pertaining to concessional 3% duty EPCG scheme under this Chapter, to the extent they are not inconsistent with the above provisions of zero duty EPCG scheme, shall be applicable to the zero duty EPCG scheme also. The zero duty EPCG scheme will be in operation till 31.3.2012. Concessional 3% Duty EPCG Scheme 5.2 C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hand capital goods, without any restriction on age, may also be imported under EPCG scheme. However, import of motor cars, sports utility vehicles/all purpose vehicles shall be allowed only to hotels, travel agents, tour operators or tour transport operators and companies owning/operating golf resorts, subject to the condition that: (i) total foreign exchange earning from hotel, travel tourism and golf tourism sectors in current and preceding three licensing years is Rs. 1.5 crores or more. (ii) 'duty saved' amount on all EPCG Authorizations issued in a licensing year for import of motor cars, sports utility vehicles/ all purpose vehicles shall not exceed 50% of average foreign exchange earnings from hotel, travel tourism and golf ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n EPCG Authorization can also be issued for import of capital goods under Scheme for Project Imports notified by the Central Board of Excise and Customs under S. No. 441 of Customs Exemption Notification No. 21/2002 dated 01.03.2002. Export obligation for such EPCG Authorizations would be eight times (6 times for zero duty EPCG scheme) of duty saved. Duty saved would be difference between the effective duty under aforesaid Customs Notification and concessional duty under the EPCG Scheme. EPCG for Retail Sector 5.2C To create modern infrastructure in retail sector, concessional duty benefits under EPCG scheme shall be extended for import of capital goods required by retailers having minimum area of 1000 sq. meters. Such retailer shall ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oned in terms of quantum of EO to be discharged by them and the B.G. will be enforced in the event of the obligation not being fulfilled. Conditions for import of Capital Goods 5.4 Import of capital goods shall be subject to Actual User condition till export obligation is completed. Export obligation 5.5 Following conditions shall apply to the fulfillment of the export obligation:- (i) Export Obligation shall be fulfilled by export of goods manufactured/services rendered by the applicant. Export obligation under the scheme shall be, over and above, the average level of exports achieved by him in the preceding three licensing years for the same and similar products within the overall export obligation period including extende ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ulfillment of export obligation, alongwith usual benefits available under paragraph 8.3 of FTP. Royalty payments received in freely convertible currency and foreign exchange received for R D services shall also be counted for discharge under EPCG. Payment received in rupee terms for port handling services, in terms of Chapter 9 of FTP shall also be counted for export obligation discharge. Provision for BIFR units 5.5.1 Any firm/ company registered with BIFR or any firm/ company acquiring a unit, which is under BIFR, may be allowed EO extension, as per rehabilitation package prepared by operating agency and approved by BIFR/Rehabilitation Department of State Government, upto 12 years if not specified. Above provisions apply also to SSI ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... issue-date. (ii) Minimum exports made under old capital goods must be 40% of total export obligation imposed on first EPCG Authorization. (iii) Export obligation would be re-fixed such that total export obligation mandated for both capital goods would be sum total of 6 times of duty saved on both the capital goods, to be fulfilled in 8 years from new authorization issue-date. (iv) Facility for technological up-gradation shall be available only once and the minimum imports to be made shall be at least 10% of the existing investment in plant and machinery by applicant. (v) Capital Goods to be imported must be new and technologically superior to earlier CG. Incentives for Fast Track Companies 5.9 To incentivize fast track compa ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
